Opinion
CASE NO. 96-51543-H5-7
February 23, 2001
Richard L. Fuqua, Fuqua Keim, L.L.C., Houston, TX, Attorney for Debtor.
William Wellborne, Houston, TX, Attorney for Judith Lehman.
Thomas Herrin, U.S. Dept. of Justice, Dallas, TX, Attorney for United States.
Came on for consideration the Motion for an Order Authorizing the Sale of Real Property, Outside the Ordinary Course of the Debtor's Business, and Free and Clear of all Liens and Encumbrances (the "Motion"), filed by Ervin L. Lehman, the Debtor herein (the "Debtor") to sell certain Property, as described in Exhibit "A" to the Motion (the "Property") to Duanne and Joanna Mann ("Purchaser"). The Motion has been filed in accordance with 11 U.S.C. § 363(b)(1) and (f), Federal Rules of Bankruptcy Procedure 6004(c) and 9014, as well as Bankruptcy Local Rule 6004. It appears to this Court that the Debtor has complied with the notice provisions of F.R.Bankr.P. 2002, and Bankruptcy Local Rules 6004 and 9013. This Court is of the opinion, and does find, that the sale of the Property to Purchaser as described in the Motion, for the amount specified therein, is fair and reasonable, and is for the best sales price currently obtainable; that the sale of the Property to Purchaser is in the best interests of the Debtor, his estate, and creditors at large. The Court further finds that the 200 acre tract described in Exhibit "A" attached to the Motion is exempt property (the "Exempt Property") and the 189 acre tract described in Exhibit "A" attached to the Motion is non-exempt property (the "Non-Exempt Property"). The Court further finds that the following lienholders have received notice of the Motion:
James Skipton 4219 S Front Brookshire, TX 77423
Cullen Center Bank Trust (now Frost National Bank) 1200 Smith Street Two Allen Center Houston, Texas 77002
Chamberlain, Hrdlicka, White, Johnson, Williams 1200 Smith Street Two Allen Center Houston, Texas 77002
Berg and Androphy 3704 Travis Houston, Texas 77002
Judith Lehman c/o William Weilborne 2500 Citywest Blvd. Suite 300 Houston, Texas 77042
Marjorie Scott 6107 Queens Wood Lane Houston, Texas 77008
Chrysler Motors Corporation P.O. Box 77196 Detroit, Michigan 48277
O'Malley Engineers c/o Moorman Tate P.O. Box 1808 Brenham, Texas 77834
Cache Research Corporation 6001 Airport SP-1199 Austin, Texas 78752-4207
Internal Revenue Service c/o Thomas M. Herrin U.S. Dept. of Justice 717 N. Harwood, Ste. 400
Barry Grain and Feed 1026 Shepherd Street Hempstead, Texas
Gary Weik c/o Bill A. Todd, Jr. 17225 El Camino Real Suite 400 Houston, Texas 77058-2716
University State Bank P.O. Box 6568 Houston, Texas 77265;
it is therefore
ORDERED, ADJUDGED AND DECREED that the Contract between Debtor and Purchaser (the "Contract") for the sale of the Property is hereby approved; and it is further
ORDERED, ADJUDGED AND DECREED that Debtor be and hereby is authorized to sell to Purchaser the Property pursuant to the terms of the Contract; and it is further
ORDERED, ADJUDGED AND DECREED that such sale, when consummated, shall have the effect of transferring the Property sold to Purchaser free and clear of all liens, claims and encumbrances; and it is further
ORDERED, ADJUDGED AND DECREED that the following expenses of sales shall be paid from the Purchase Price at closing:
$15,844.00 as commissions for the sale of the Property;
$11,560.78 to Waller County Tax Collector;
$29,656.01 to Waller ISD,
$4,270.00 to Riley Engineering for survey;
$6,336.19 to Commonwealth Title for title charges;
$462.00 for various search and recording fees;
ORDERED, ADJUDGED AND DECREED that Judith Lehman shall be paid Three Hundred Thousand Dollars ($300,000.00) from the proceeds of the sale of the Property in partial satisfaction of her $330,000.00 judgment/lien and without waiving interest accruals occurring on and after March 4, 2001; it is further
ORDERED, ADJUDGED and DECREED that Marjorie Scott shall be paid Thirty Thousand Dollars ($30,000.00) from the proceeds in partial satisfaction of her $47,000.00 lien and without waiving interest accruals occurring on and after March 4, 2001; it is further
ORDERED, ADJUDGED and DECREED that the Internal Revenue Service shall be paid Eighty Five Thousand Six Hundred Eighty Three Thousand and 81/100 Dollars ($85,683.81) for its claims arising from the Debtor's 1989 1040 tax liability plus $389.89 for its claims arising from Debtor's 1993 1040 tax liability, from the proceeds; and it is further
ORDERED, ADJUDGED and DECREED that Ervin Lehman shall be paid Two Hundred Thousand Dollars ($200,000.00) from the proceeds; and it is further
ORDERED that, contemporaneously with the Closing of the sale of the Property, Commonwealth Title Company is directed to pay to Fuqua Keim, L.L.C. ("Fuqua Keim"), the remaining proceeds of sale after deducting the above described payments to be held in escrow by Fuqua Keim pending further Order of this Court; the parties reserve all rights to assert their remaining liens against the proceeds held in the Fuqua Keim escrow account and waive any and remaining liens against the proceeds held in the Fuqua Keim escrow account and waive any and all claims to or against the other funds ordered transferred by this Order; and it is further
ORDERED, ADJUDGED AND DECREED that after payment of the amounts set forth in the preceding paragraphs or in later hearings to be conducted before this Court regarding the funds escrowed by Fuqua Keim, any sums received by the Debtor pursuant to this or further Orders of this Court are his exempt property.
APPROVED AND ENTRY REQUESTED:
_________________________ Ervin L. Lehman, Debtor
_________________________ Richard L. Fuqua SBN 07552300 Fuqua Keim, L.L.C. 2777 Allen Parkway Suite 480 Houston, Texas 77019 Telephone 713.960.0277 Facsimile 713.960.1064 Attorney for Debtor
_________________________ William Wellborne SBN 21134200 2500 Citywest Blvd., Suite 300 Houston, Texas 77042 Telephone 713.953.9200 Facsimile 713.953.9220 Attorney for Judith Lehman
_________________________ Thomas Herrin SBN 09533500 U.S. Dept. of Justice 717 N. Harwood, Ste. 400 Dallas, TX 75201 Telephone 214.880.9745 Facsimile 214.880.9742 Attorney for United States
APPROVED AND ENTRY REQUESTED: _________________________ Ervin L. Lehman, Debtor
_________________________ Richard L. Fuqua SEN 07552200 Fuqua Keim, L.L.C. 2777 Allen Parkway Suite 480 Houston, Texas 77019 Telephone 713.960.0277 Facsimile 713.960.1064 Attorney for Debtor
_________________________ William Wellborne SEN 21134200 2500 Citywest Blvd., Suite 300 Houston, Texas 77042 Telephone 713.953.9200 Facsimile 713.953.9220 Attorney for Judith Lebman
_________________________ Thomas Herrin SBN 09533500 U.S. Dept. of Justiee 717 N. Harwood, Ste. 400 Dallas, TX 75201 Telephone 214.880.9745 Facsimile 214.880.9742 Attorney for United States